On Tuesday, the 3rd of March 2020, all three key indices of Wall St. nosedived nearly 3 per cent following a volatile session with a number of pivotal events including US Fed’s surprise rate cut by 50bps aimed at insulating the world’s No.
1 economy from a global-scale recession. Nonetheless, Tuesday’s (March 3rd) Fed rate decision initially helped Wall St. pare some of its losses, but at the end of the day, Fed’s surprise approach to soothe up the market atmosphere had boomeranged Wall St.
as the emergency rate-cut which was never seen since the great financial depression of 2008, eventually had intensified investors’ worries over coronavirus’ financial fallouts and led to another torrential wave of sell offs.
Meanwhile, addressing to a havoc-scale virus-led uncertainty engulfing Wall St., the founder of Kenny’s Commentary LLC and Strategic Board Solutions LLC in NY, Peter Kenny said on Tuesday’s (March 3rd) market wrap-up, “The rate cut underscores the magnitude of the problem that the global economy is facing.
Normally, markets would welcome a rate cut, and they were hoping for it. Now that we’ve got it, the question is, what’s next?” Besides, US 10-yr government bonds had also fallen below 1 per cent for the first time in history as tens of thousands of investors across the globe were seeking safety on US Treasury by ditching out riskier assets.
Quoting statistics, on Tuesday’s (March 3rd) Wall St. wrap-up, Dow plunged by 2.94 per cent to 25,917.41 and S&P 500 descended 2.81 per cent to 3,003.37, while Nasdaq was nudged 2.99 per cent lower to 8,684.09.